Abstract
As an effort to maintain and improve its national road condition with a strict budget, the Government of Indonesia has implemented various types of contract in road maintenance. One of the road maintenance contract, i.e. performanced based contract (PBC), allows the contractor to design, build, and maintain the road and use performance measures as payment requirement. While many researches state that the PBC implementation on road maintenance may lead to cost efficiency, in Indonesia the cost efficiency is still questionable. This research is trying to answer the question by comparing actual road maintenance cost of two roads with same characteristics, while one is PBC and the other is traditional contract. The result shows that in one case PBC is cheaper than traditional contract, while the other case shows the opposite.
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